Jazz confirms opt-in and advances zanidatamab partnership with Zymeworks

Canada’s Zymeworks (Nasdaq: ZYME) saw its shares leap 17% $8.28 today, after it revealed that Jazz Pharmaceuticals (Nasdaq: JAZZ) has exercised its option to continue with its exclusive development and commercialization rights to Zymeworks' zanidatamab in key markets, including the USA, Europe and Japan, under the license and collaboration agreement the drugmakers entered into in October this year.

Ireland-incorporated Jazz, which edged up 2.5% to $160 on the news, will make a one-time payment of $325 million to Zymeworks. Additionally, Zymeworks becomes eligible to receive further payments of up to $1.76 billion for potential regulatory and commercial milestones, plus royalties on Jazz’s net sales. Jazz’s decision to continue the agreement follows Monday’s positive top-line clinical data readout from HERIZON-BTC-01, a pivotal trial in previously treated HER2-amplified biliary tract cancers.

The prompt opt-in is reassuring for Zymeworks, which has had a difficult few months that included a change in chief executive and reshuffle in its senior management, as well as layoffs to reduce costs.